Animoca Brands Pauses Merger Deal That Would Have Taken It Public

Web3 investment firm Animoca Brands has suspended talks on a reverse merger that would have brought it back to public markets, though the company says it remains committed to relisting on a major exchange.

Merger Discussions Put on Hold

Animoca and its planned merger partner, a Nasdaq-listed fintech company, mutually agreed to pause the deal after reviewing projected timelines and shifting market conditions. Company leadership said maintaining flexibility now takes priority over completing the specific merger, while emphasizing that the company continues working toward meeting the compliance requirements needed for a listing on a major public exchange. Both companies left the door open to resuming talks if circumstances change in the future.

Background on the Deal and Delisting

The original merger plan, announced late last year, would have seen the partner company acquire Animoca through a structured arrangement, leaving Animoca’s shareholders with the overwhelming majority stake in the combined company. Animoca was previously delisted from an exchange in 2020 following scrutiny over its crypto-related business activities, and was later fined for failing to file required financial reports on time. The company has since been working to catch up on its audited financial statements, having released a report for a previous fiscal year earlier this year, with additional audits still in progress.

The Other Side of the Deal

The fintech company involved in the proposed merger focuses on artificial intelligence and asset tokenization, and recently announced a separate partnership to bring another company’s Nasdaq-listed shares onto the blockchain.